Stocks fall faster than they rise. I ‘got lucky’ with this one, booking profits in the low 20’s . I have looked but not reentered, especially after we Wallstripped it again on our anniversary show.

If you held on, today you will likely be stopped out. It is a brutal part of the investment business. Too many great names right now for me to look at Smith and Wesson as a new position. The trend looks broken for now.

This morning’s plunge is a reminder of two other important investment habits you must practice:

1. Booking profits on the way up is not and a tool you must use.
2. Diversification

Stocks have had huge runs in the last few years, especially the stocks we have covered on this blog and Wallstrip. If you avoided this one, good. If not, sorry. Either way, use the Smith and Wesson news to remember that stocks don’t just go up. It sucks, but it’s reality. Don’t be hogs.